BY MICHAEL HAWTHORNE
Enquirer Columbus Bureau
David J. Randall pleaded guilty to bribery..
(AP photo)
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COLUMBUS -- The former No. 2 official at the Ohio Department of Insurance put his agency up "for sale" by accepting bribes from the state's largest medical malpractice insurer and a top Statehouse lobbyist, according to an investigative report released Friday.
David J. Randall, 36, pleaded guilty in Franklin County Common Pleas Court to two felony counts of bribery and one misdemeanor count for lying to investigators about his role in a wide-ranging influence scandal.
He faces up to 10 years in prison and $10,000 in fines when he is sentenced Aug. 4.
As part of a plea agreement, Mr. Randall pledged to cooperate with state and federal authorities investigating the financial demise of Cleveland-based PIE Mutual Insurance and the failed merger of Blue Cross and Blue Shield of Ohio and Columbia - HCA Healthcare Corp.
Mr. Randall quietly answered "guilty" when asked by Judge David W. Fais about a list of offenses that included soliciting and accepting cash, Cleveland Indians baseball tickets, a laptop computer, hotel accommodations, air fare and other amenities from PIE executives and former top insurance lobbyist Thomas Strussion. Mr. Strussion told investigators he also picked up the balance of the bill for Mr. Randall's wedding reception at a Columbus-area country club and paid for his bachelor party, which included a $70 credit card charge for a hotel bed "broken by dancers."
Judge Fais released Mr. Randall on a $20,000 bond pending his sentencing.
A summary of the investigation released by state Inspector General Richard Ward details how Mr. Randall used his position at the state insurance deparment to benefit PIE and companies represented by Mr. Strussion.
"Almost every decision Randall made appears to have been motivated by how it might better position himself financially or once he left state employment," the report states.
"His relationship with a company his department was charged with regulating clearly crossed any possible propriety and is a blatant example of corruption in the process of government. The result of his actions will no doubt add to the general lack of faith people have in government today."
Mr. Strussion is to be sentenced June 23 on five charges, including attempted bribery. Mr. Randall and Mr. Strussion once were close friends who worked together in the late 1980s as aides to former state Sen. Robert Ney, a St. Clairsville Republican who now serves in Congress.
According to the report and a bill of particulars filed with the plea agreement, Mr. Randall:
Wrote letters in June 1996 and April 1997 professing that PIE was in good financial health "at a time when he knew or should have known PIE to be financially unstable."
The state insurance department took over PIE in December in response to allegations of financial mismanagement and started selling off the company's assets. The company's deficit exceeded $275 million at the end of 1997.
Signed off on PIE's $11.9 million investment in a Hilton Head, S.C., retirement development in April 1995, "even though the action was beyond the scope of his normal duties and responsibilities." It was the only time Mr. Randall made such a decision while at the insurance department.
Tried to intervene with another state agency on behalf of Genesis Health Plan of Ohio and MedOhio Health Plan Inc., companies Mr. Strussion represented that were seeking to participate in the state's Medicaid program.
As the financial health of PIE worsened, court documents show, Mr. Randall accepted transportation on a company jet in December 1996 for him and his family to stay at a Hilton Head condominium owned by Larry E. Rogers, a top Republican campaign contributor who was the company's president and chief executive officer.
Mr. Randall also accepted free tickets on four occasions between April 1994 and April 1997 to attend Cleveland Indians baseball games in PIE's skybox at Jacobs Field.
In addition to the gifts provided by PIE, Mr. Randall pleaded guilty to accepting thousands of dollars of amenities from Mr. Strussion, including accommodations at swank hotels in New York and Washington, D.C., air fare and telephone credit-card expenses.
At one point, the report states, Mr. Randall tried to pressure Mr. Strussion into making monthly payments to him of up to $1,800.
"Ultimately, this relationship was no longer based upon friendship," the report states. "It was two people who lacked any moral compass and sought only how they might use others to reap undeserved benefits for themselves."
Mr. Randall's estranged wife, Cortney, also received a combined $28,000 from Mr. Strussion and two companies affiliated with Mr. Rogers, according to the investigative report.
Mr. Randall, who left the insurance department in May 1997, declined to comment after leaving the courtroom. His wife's attorney could not be reached for comment.
Karl Schneider, Mr. Randall's attorney, said his client was guilty of "errors in judgment." He said Mr. Randall did not contribute to to PIE's financial problems or cover them up.
Said Mr. Schneider: "He admitted his wrongdoing, he's cooperating with the authorities and, hopefully, he can get his life back on track."
